US stocks ended higher Friday, with the S&P 500 index and the Nasdaq notching their best week in nearly seven years, after suggestions from officials that some sort of a trade deal is possible between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Argentina. The Dow Jones Industrial Average rose 199.62 points, or 0.8%, to 25,538.46 and the S&P 500 index climbed 22.41 points, or 0.8%, to 2,760.17.The Nasdaq Composite Index gained 57.45 points, or 0.8%, to 7,330.54.
European markets meanwhile ended the session slightly lower, finishing the penultimate month of the year in the red, as investors retained their focus on the then still ongoing G-20 summit in Buenos Aires. The Stoxx Europe 600 closed 0.2% lower at 357.49, putting a finishing touch on a 1.1% drop for the month while Germany’s DAX dipped to close down 0.4% at 11,257.24.The U.K.’s FTSE 100 ended down 0.8% at 6,980.24.
Trump tweets on China tariff cuts
U.S. President Donald Trump said China had agreed to cut import tariffs on American-made cars, buoying shares in BMW and Daimler AG who manufacture in the United States for export to the world’s biggest auto market.Trump’s announcementhowever did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies.
The move, if realized, would bolster U.S. carmakers who were hit hard when China ramped up levies on U.S.-made cars in July as part of a broad package of retaliatory tariffs amid the sprawling trade war between Washington and Beijing. Beijing had previously raised tariffs on U.S. auto imports to 40% in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passengers vehicles the United States exported to China last year.
Qualcomm walking away from NXP deal
U.S. chipmaker Qualcomm Increjected a suggestion by the White House that its collapsed $44 billion acquisition of Dutch peer NXP Semiconductors could be revived, saying the deal had been terminated as the deadline had expired. After high-stakes talks on Saturday between U.S. President Donald Trump and Chinese President Xi Jinping in Argentina, the White House said that China was “open to approving the previously unapproved” deal for Qualcomm to acquire NXP “should it again be presented”.
Qualcomm, the world’s biggest smartphone-chip maker, walked away in July from the mammoth deal to buy NXP after failing to secure Chinese regulatory approval, becoming a high-profile victim of the China-U.S. trade dispute.
Disclaimer: This article was issued by Peter Petrov, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.